Hedge Fund Blow Ups – Any Day Now!

Yesterday I was speaking at a hedge fund conference. On a discussion panel with me were some very eminent hedge fund managers. When asked their returns all of them said ten, 15, 20 percent this year. Perfectly normal numbers. It seemed strange to hear such normal numbers at a time of such abnormal markets.

Maybe that was because the specially picked panel was made up of sensible and respectable managers, those who would do well, and importantly, act conservatively, whatever the state of the markets.

But such managers are unfortunately rather rare.

While highly regulated banks can collapse any day of the month, hedge funds tend to report their performance on a monthly basis and can sometimes cling on to life, limping along until they can keep the sorry state of their business secret no longer. With the wild swings in the market of late it seems reasonable that it won’t be too long before we start hearing about the collapsing of hedge funds, and maybe some big names among them.

P

Related Posts

Where Do You Keep Your Offshore Money? Where do you keep your offshore money? The media is all upset about celebs, politicians, etc. having money in various offshore places, in order to ...
Bloomberg View Columnist Barry Ritholtz Interviews... Listen to Barry Ritholtz interview Paul Wilmott about quantitative finance, mathematical modelling, reputational risk, Tom Cruise, JK Rowling, Billy J...
Boris Johnson, Yanis Varoufakis And Sir Vince Cabl... Boris Johnson, Yanis Varoufakis and Sir Vince Cable all have something in common…. All three have been in the news lately with their interpretation...
Webcast – Paul Wilmott On “The Money F... Paul recently gave a talk in downtown Manhattan about his new book, co-authored with David Orrell, The Money Formula. Other topics get dragged in alon...
Jeremy Corbyn: My Part In His Ascent First, disclosure: I am rather right wing, from the school of "take some of my income in taxes but otherwise leave me alone, please." And as a general...
The Money Formula – New Book By Paul Wilmott... The Money Formula: Dodgy Finance, Pseudo Science, and How Mathematicians Took Over the Markets OUT NOW!!! Buy Paul's Latest book NOW on Amazon! ...
Ed Thorp: A Man For All Markets The book we've been waiting for, the full story of Ed Thorp's career in mathematics, science, gambling, and finance. An inspiration for us mortals. ...
We have adjusted our estimate of Mark Carney’... In August The Bank of England forecast growth in the UK in  2017 to be 0.8%. They have now adjusted that forecast to 2%. That's a factor of 2.5....